The Chilean lithium carbonate market has stagnated in the first half of March 2025 after registering a significant decline caused by global oversupply and lower-than-expected demand from key consumers, the lithium-ion battery sector. Chile continues to position itself as the leading worldwide supplier of lithium carbonate, even with constant price pressure.

Unexpectedly, in the first week of March, the sudden power outage caused Albemarle Corporation’s site in La Negra to shut down its operation for four days. The recent power outage significantly impacted the nation’s mining sector. Codelco, the state-owned copper corporation, affirmed that its mining operations throughout the country had been affected due to electric failure. However, a minimal impact on the lithium carbonate market was observed due to weak demand and significant stock availability.

Recent data reveals that January shipping volumes have soared significantly, mainly to China, a leading importer of lithium carbonate, showcasing Chile’s strategic supply chain. Moreover, last year’s data released by SQM, the market giant, showed that lithium sales were about 205,000 MT of lithium carbonate equivalent (LCE), registering an increase of 21% from 2023. However, this increase in volume was insufficient of counterbalance the continuous decline in lithium carbonate prices.

Recently, SQM released its fourth quarter figures, indicating a significant decline in the company’s financial performance. It reported a 40.9% fall in net profit, though sales volumes soared considerably, offsetting a sharp decline in lithium prices. In Q4, the sales of lithium rose remarkably to 58,000 MT of lithium carbonate equivalent (LCE), which is close to its spodumene concentrate sales figures. The net sales dropped to USD 120.1 million during the October-December period from USD 205.9 million a year prior.

The primary reason for this decline is lithium prices, particularly lithium carbonate, that have fallen by more than 80% in the past two years. According to analysts, the average lithium carbonate price for the year 2025 is foreseen to remain below the average 2024 prices.

As per the ChemAnalyst analysis, the lithium carbonate market is anticipated to hold stability in the upcoming weeks. With oversupply being a major concern, the market participants expect that production cuts in the previous year and better demand from certain important areas could support price stability; however, uncertainty persists. The global lithium-ion battery industry is entering a new chapter of its growth story, as decreasing manufacturing costs and rising demand are predicted to trigger fierce competition globally. Unpredictably due to US and China trade disputes could have a significant impact on the market.